Rockwell Automation, Inc. (ROK) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Rockwell Automation, Inc.

Updated on October 12, 2026 · accounts published on August 4, 2026

A highly profitable, cash-generative industrial business that is barely growing

Rockwell Automation trades at a P/E of 42.0× over the last 12 months, higher than 93 % of the past decade, with a ROIC of 19.7 %.

• Is Rockwell Automation expensive or cheap? Its P/E is 62 % above the sector median, and over the past decade it has traded at a lower P/E 93 % of the time.
• How is the business doing? Operating margin reached 21.7 % over the last 12 months, above the 17.1 % average for fiscal 2014-2025, but revenue grew only 1 %.
• How strong is the balance sheet? Net debt was 2.3× EBITDA in fiscal 2025, and the dividend per share has risen for 11 consecutive fiscal years.
• What to expect from the next earnings? Analysts expect EPS of $3.69 on November 5, 2026, after the company beat estimates in each of the last 8 quarters.
• Does it turn its margin into cash, and what multiple of the cycle does it trade at? Free cash flow was 156 % of net income in fiscal 2025, far above the 85 % that counts as healthy for industrials.

Is Rockwell Automation expensive or cheap?

Rockwell Automation trades at a P/E of 42.0× over the last 12 months. That is 28 % above its ten-year median of 32.7× and 62 % above the 25.9× median of its sector. Over the decade its P/E ranged from 16.3× to 48.5×, so today's multiple sits near the top. EV/EBITDA of 29.4× compares with a seven-year average of 22.2×. The free cash flow yield is 2.7 %. The shares are up 24 % over 12 months and sit 10 % below their 52-week high of $495.08. Investors are paying a premium for quality and assuming earnings will grow into the multiple.

How is the business doing?

Rockwell Automation is more profitable than usual but barely growing. Over the last 12 months revenue rose 1.0 % and EPS fell 7.4 %, so the higher margin has not yet produced higher per-share earnings. ROIC of 19.7 % over the last 12 months is 10.9 points above the 8.8 % sector median. It stayed above 10 % in nine of the last ten fiscal years, and the weakest year was 2021 at 7.7 %. ROE stands at 33.3 % and the net margin at 13.4 %. The quality is steady; what the numbers lack is growth.

How strong is the balance sheet?

Rockwell Automation carries real debt, at a manageable level. Net debt of $29.59 per share in fiscal 2025 equals 2.3× EBITDA, below the 3× ceiling considered healthy for industrials, and just 6.6 % of the current share price. Over the last 12 months debt to equity is 1.03 and the current ratio is 1.08, so short-term liquidity is tight but adequate. The Altman Z of 5.0 is well inside the safe zone, and the Piotroski score is 7 of 9. The dividend yields 1.2 %, but the 68 % payout in fiscal 2025 leaves less room for increases if earnings stall.

What to expect from the next earnings?

Rockwell Automation has beaten EPS estimates in all of the last 8 quarters. On August 4, 2026 it reported $3.49 against $3.38 expected, a 3.3 % beat. For the results due November 5, 2026, analysts expect $3.69. Over the last 27 days, the 2027 EPS consensus from 18 analysts edged up 0.5 %, from $14.83 to $14.91, while revenue estimates barely moved. Of the 41 analysts covering the stock, 11 rate it a buy, 28 a hold and 2 a sell. The mostly-hold consensus fits a company that keeps delivering at a price that already reflects much of it.

Does it turn its margin into cash, and what multiple of the cycle does it trade at?

Industrials are semi-cyclical, so a single good year proves little. That is why the sector is judged on operating margin, cash conversion and multiples set against their own cycle. Rockwell Automation passes on quality. Its fiscal 2025 operating margin of 17.1 % beats the 12 % threshold, and ROIC of 19.7 % clears 15 %. Revenue per share grew 6.2 % a year over fiscal 2020-2025, just over the 6 % bar. Capex was only 2.2 % of revenue, below the usual 4-8 % range. It fails on price: both the P/E of 42.0× and the EV/EBITDA of 29.4× are more than 10 % above their averages of 31.8× and 22.2×.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.